Global IoT Connectivity market hit $15B in 2023 as 5G Drives Growth
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Mobile operators worldwide earned a combined $15 billion from 3.6 billion cellular IoT connections in 2023 according to IoT Analytics ‘Global Cellular IoT Connectivity Tracker & Forecast’ and IoT Mobile Operator 'Pricing & Market Report 2024–2030'.
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Sustained growth
Mobile operators’ IoT revenue growth rate of 23% year-on-year exceeded that of IoT software companies and manufacturers in 2023. Cellular IoT connections grew even while the shipments and revenue for IoT hardware declined globally in 2023.
The top five mobile IoT network operators managed 83% of all global IoT connections, although this ‘only’ represented 64% of combined revenue.
Why it matters
For smart mobile operators, market data informs strategic IoT service design, directing them to where to seek new revenue channels, optimize networks for growth, and form partnerships for emerging IoT markets.
Market overview
Mobile operators worldwide earned $15 billion from 3.56 billion cellular IoT connections in 2023. According to the IoT Analytics report, mobile operator IoT revenue grew at a CAGR of 16% since 2010. IoT Analytics projects growth acceleration starting in 2024, with the CAGR expected to exceed 18% by 2030.
The mobile IoT revenue growth-rate set the pace in 2023, exceeding that for software vendors and hyperscalers in general in 2023, according to IoT Analytics’ Global IoT Enterprise Spending dashboard (updated June 2024). This data point shows that the relative importance of cellular connectivity for IoT-connected devices continues to increase.
The market for cellular IoT connections grew while the market for cellular IoT modules declined. In 2023, cellular IoT module vendors saw a 10% decline in revenue year-over-year (YoY) stemming from a decline in module shipments. However, cellular IoT connectivity revenue grew 23% YoY, supporting IoT Analytics’ recent analysis that the cellular IoT module market decline resulted from inventory strategies to prevent overstocking. Demand for LTE Cat 1 bis and 5G in China has fueled an upswing in the cellular IoT module market.
Top 5 mobile operators by connections & cevenue
The top five network operators managed 83% of all global cellular IoT connections in 2023. These top five are China Mobile, China Telecom, China Unicom, Vodafone, and AT&T. In terms of IoT revenue, the top five network operators made up 64% of the IoT mobile operator market, with China Mobile, Verizon, AT&T, China Unicom, and Deutsche Telekom (including T-Mobile) leading the market.
Key insights on 2023 market developments of leading mobile IoT operators:
China Mobile. China Mobile contributed 46% of global cellular IoT connections and 20% of global cellular IoT connectivity revenue in 2023. China Mobile’s cellular IoT connections grew by 20% YoY due to its one-stop solution strategy, shifting focus from pure connectivity to comprehensive solutions. China’s mobile one-stop solution strategy encompasses hardware components like chips, operating systems, and modules. It also integrates with three key IoT platforms—OneLink, OneNET, and OneCyber—and targets three main areas of application: video-based IoT, urban IoT, and industrial IoT.
China Telecom. China Telecom contributed 15% of global cellular IoT connections and 7% of global cellular IoT connectivity revenue. China Telecom’s cellular IoT connection grew by 28% YoY due to a focus on urban management solutions leveraging the IoT Cognition Cloud Platform, empowering over 100 use cases for urban management. These use cases range from flood-level detection to fire protection, providing a comprehensive view of a city’s status, including aspects such as heat distribution, location and condition, alert statistics, and facility conditions.
China Unicom. China Unicom contributed 14% of global cellular IoT connections and 10% of global cellular IoT connectivity revenue. China Unicom’s cellular IoT connection grew by 28% YoY due to the adoption of 4G and 5G high-speed technologies. Notably, deploying 5G IoT connections led to China Unicom’s growth.
Vodafone. Vodafone contributed 5% of global cellular IoT connections and 9% of global cellular IoT connectivity revenue. Vodafone’s cellular IoT connection grew by 15% YoY due to strong demand from the automotive sector.
AT&T. AT&T contributed 4% of global cellular IoT connections and 12% of global cellular IoT connectivity revenue. AT&T’s cellular IoT connection grew by 19% YoY due to strong demand from the automotive sector.
Higher prices
IoT connectivity price points vary by region. According to IoT Analytics’ Pricing report, Western mobile operators companies like AT&T, Verizon, Deutsche Telekom, and others offer cellular IoT data plans at relatively higher price points than the global average, leading to higher revenue even with fewer IoT connections. However, China Mobile leads in both revenue and the number of connections.
Future outlook
5G and 5G RedCap to contribute nearly 50% of mobile operator IoT connectivity revenue by 2030. Based on the IoT connectivity tracker, IoT Analytics forecasts 5G and 5G RedCap will drive the global cellular IoT connectivity market up to a CAGR of 18% from 2024 to 2030 as they increase their combined market revenue share to a near majority by the end of this timeframe. According to IoT Analytics’s 5G IoT & Private 5G Market Report 2024–2030, 5G IoT connections are forecasted to grow at a CAGR of 44% from 2024 to 2030.
Flexibility & cost
Flexibility and cost-effectiveness drive 5G RedCap adoption. IoT devices embedded with the RedCap module do not require tight or deterministic latency as in time-critical communications applications. Such devices require a data rate of less than 150 Mbps for download and less than 50 Mbps for upload, with a latency of less than 100ms.
This reduces the complexity of the devices and keeps the costs down, leading to an increase in consumer, enterprise, and industrial devices using 5G RedCap hitting the market. Most notably, 5G RedCap’s use in video surveillance is gaining popularity, as it offers sufficient uplink data rates required for video cameras to transmit high-quality video streams without requiring the full capabilities (and costs) of standard 5G.
To find out how to future-proof your IOT business, talk to 1GLOBAL today.
About 1GLOBAL
1GLOBAL is a distinguished international provider of specialty telecommunications services catering to Global Enterprises, Financial Institutions, IoT, Mobile Operators and Tech & Travel companies. 1GLOBAL is an eSIM pioneer, a fully accredited and GSMA-certified telco, a full MVNO in ten countries, fully regulated in 42 countries, and covers 190+ countries.
It delivers comprehensive communication solutions that encompass Voice, Data & SMS - all supported by a unique global core network. Its constantly expanding portfolio of advanced products and services includes White Label eSIMs, Connectivity Solutions, Compliance and Recording, Consumer & M2M SIM Provisioning and an Entitlement Server.
is an extensively experienced creative who has worked as a lead copywriter for numerous global clients and international household names, working on through-the-line projects, creative copy, ideation, content, marketing and brand activation for highly diverse industries in the business world. Duncan's career has included almost every sector imaginable, particularly across the tech space, making his news and industry analysis focused on eSIM, IoT and business connectivity both well-informed and engaging. 
